Brazil’s Banco do Brasil Now Allows Tax Payments in Crypto

• Banco do Brasil has partnered with payments firm Bitfy.
• Taxpayers will be able to see their tax bill by scanning a barcode.

To make paying taxes easier, a prominent Brazilian bank is now accepting cryptocurrency payments. Banco do Brasil, a major Brazilian financial institution, said in a press release on February 11 that it has partnered with Bitfy, a cryptocurrency exchange established in Brazil, to make it “possible” for Brazilian citizens to pay their taxes in cryptocurrency.

Bitfy, the “collection partner” for the big Brazilian bank, is making this service accessible to its Brazilian customers through its diversified offerings.

New Digital Economy

Furthermore, the article is pointing out that this service not only benefits clients but also broadens the usage and access to the digital asset ecosystem with “national coverage” and the security that comes from working with a respected bank.

The “new digital economy is a catalyst for a future full of advantages,” Bitfy CEO and co-founder Lucas Schoch said. According to the announcement, paying taxes using cryptocurrency is a simple procedure since users can see the exact amount of reals (Brazil’s official currency) that has to be converted into the selected cryptocurrency.

Moreover, taxpayers will be able to see their tax bill by scanning a barcode, much to how they pay for a “boleto,” or ticket, a common form of payment in Brazil.

In October 2022, Rio de Janeiro, Brazil, started to accept cryptocurrency payments for taxes, therefore this change follows suit. The usage of cryptocurrencies in Brazil as a mode of payment was made legal by the country’s legislature in December 2022. In all likelihood, the measure will take effect in June.